Marathon
Digital Holdings, the largest publicly listed Bitcoin (BTC) miner on Wall
Street (NASDAQ: MARA), has successfully closed a $300 million offering of
convertible senior notes and used a significant portion of the proceeds to
purchase Bitcoin.
Marathon Acquires $249
Million in Bitcoin
The company
issued 2.125% convertible senior notes due 2031 in a private offering to
qualified institutional buyers. The net proceeds from the sale amounted to
approximately $292.5 million after deducting initial purchasers’ discounts and
commissions.
MARA
announced that it had acquired approximately 4,144 Bitcoin for $249 million
between August 12 and August 14, 2024. The purchase was made at an average
price of $59,500 per Bitcoin, including fees and expenses.
MARA secures $300M through an oversubscribed offering of convertible senior notes. With proceeds, we purchased 4,144 BTC (valued at approx. $249M), boosting our strategic bitcoin reserve to over 25,000 BTC. Learn more: pic.twitter.com/EKwKW6eSny
— MARA (@MarathonDH) August 14, 2024
Marathon
Digital plans to use the remaining proceeds from the note offering for
additional Bitcoin acquisitions and general corporate purposes, including
potential strategic acquisitions and debt repayment.
“We
currently own and operate approximately 54% of the 1.1 gigawatts of power in
our diversified portfolio of digital asset compute,” commented Fred Thiel,
MARA’s Chairman and CEO. “We will continue making owned and operated sites a
greater percentage of our fleet over time and expect to see cost savings on a
cost per petahash basis as this occurs. Longer-term, our intention is to be
amongst the lower cost operators in the industry.”
The company
is currently the largest cryptocurrency miner on Wall Street, with a market
capitalization of nearly $6 billion. Clean Spark (NASDAQ: CLSK), which is in
second place, is almost half its size. The market capitalization would have
been higher if not for recent declines, which were triggered by a $138 million
penalty imposed on the company by a court.
The
verdict, issued in federal court, found that Marathon violated a non-disclosure
and non-circumvention agreement with Michael Ho, the Director of Strategy at
Marathon’s direct competitor, Hut 8.
Marathon addressed
the issue, stating that while they respect the decision, they are convinced
that “the jury reached the wrong conclusion.”
“There
was no wrongdoing on the company’s part,” Marathon Digital commented in a statement
sent to Finance…
